Last month there were media reports that the French engineering conglomerate Alstom SA is evaluating a potential offer to acquire its subsidiary REpower Systems. The report which appeared in the Financial Times Deutschland said, without quoting sources, that Alstom is working on an offer to buy REpower. According to Financial Times Deutschland, Alstom has been given exclusive access to financial data of REpower which may be sold to the company for 1.5 billion euros ($2 billion). Sector experts said that Suzlon may not consider complete exit in REpower, which is the biggest growth driver for the company. But strategic investors may not be interested in a minority stake in the company. In 2007, Suzlon Energy, through its subsidiary AE-Rotor Holding B.V., acquired REpower Systems to expand its presence in Europe and to get access to the company's technology. Although Suzlon gained management control of REpower, it was not allowed access to the company's technology as the German law does not allow it in the interest of minority shareholders. Suzlon succeeded in completing the acquisition of REpower in September 2011 and made the latter a 100%-owned subsidiary.
A company of such magnitude cannot trade at Rs.24-25. Since you have got the share at such a low price, you should buy it and keep holding. These are some of the very few occasions when you can buy the share of a leader at such a price.
Last time also, if you remember, I recommended the scrip at around Rs.22, after which a number of analyst started to recommend and the scrip touched Rs.31. This time also similar thing will happen, as the company continues to build its strong order book positions.